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Test: Sectors of the Indian Economy - 1 - UPSC MCQ


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10 Questions MCQ Test Indian Economy for UPSC CSE - Test: Sectors of the Indian Economy - 1

Test: Sectors of the Indian Economy - 1 for UPSC 2024 is part of Indian Economy for UPSC CSE preparation. The Test: Sectors of the Indian Economy - 1 questions and answers have been prepared according to the UPSC exam syllabus.The Test: Sectors of the Indian Economy - 1 MCQs are made for UPSC 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Sectors of the Indian Economy - 1 below.
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Test: Sectors of the Indian Economy - 1 - Question 1

Animal Husbandry is a part of

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 1

Primary sector consists of agriculture. It is also known as raw material sector. Agriculture, crop production, animal husbandry, fisheries and mining- all are included in primary sector. Hence, rural banking does not relate to primary sector as it is a part of tertiary sector.

Test: Sectors of the Indian Economy - 1 - Question 2

Assertion: Primary sector is the largest employer.
Reason: It includes all those occupations which are related to man’s natural environment like farming, animal rearing, mining etc.

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 2
Primary Sector as the Largest Employer
The assertion states that the primary sector is the largest employer, while the reason provided is that it includes occupations related to man's natural environment such as farming, animal rearing, and mining. Let's analyze whether both the assertion and the reason are true and if the reason is a correct explanation for the assertion.
A: Both A and R are true and R is the correct explanation of A.
- The primary sector refers to the sector of the economy that is involved in the extraction and production of natural resources. It includes activities such as agriculture, forestry, fishing, mining, and quarrying.
- The primary sector is indeed the largest employer in many countries, especially in developing economies where agriculture plays a significant role in the economy.
- The reason provided also aligns with the definition of the primary sector, stating that it involves occupations related to man's natural environment like farming, animal rearing, and mining.
- The reason correctly explains why the primary sector is the largest employer, as these activities require a significant workforce due to their nature and scale.
Therefore, both the assertion and the reason are true, and the reason is indeed the correct explanation of the assertion.
Hence, the correct answer is A: Both A and R are true, and R is the correct explanation of A.
Test: Sectors of the Indian Economy - 1 - Question 3

The sectors are classified into public and private sector on the basis of:

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 3

Industries in the public sector are owned by the government while those in the private sector are owned by entrepreneurs.

In Public sector, the government owns most of the assets and provides all the services.In the Private sector, ownership of assets and delivery of services is in the hands of private individual or companies.

Test: Sectors of the Indian Economy - 1 - Question 4

Converting iron ore to steel is a part of

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 4

All industrial and manufacturing work comes under secondary sector and activities and converting iron ore to steel is an industrial activity. Hence it comes under secondary activity.

Test: Sectors of the Indian Economy - 1 - Question 5

Assertion: Agriculture is an activity . of the organised sector in India.
Reason: Most of the workers. working on agriculture are employed only during harvesting and sowing season.

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 5

Agriculture is not an organised sector because you need to ask for loans that also from the informal sources that is the moneylenders,family or friend to buy all the necessary things like fertilizers, seeds etc. They also ask a high rate of interest . Farmers don't prefer taking loans from bank because banks ask for collateral or papers like adhaar which mostly farmers don't have .

Test: Sectors of the Indian Economy - 1 - Question 6

When we produce a good by exploiting natural resources, it is an activity of the:

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 6

When the economic activity depends mainly on exploitation of natural resources then that activity comes under the primary sector. Agriculture and its related activities are the primary sectors of economy. PRIMARY SECTOR is the economic sector that produce goods by exploiting the natural resources because it forms the base for all the products that are associated directly with land and water. Production of wheat, vegetables, milk , marble and coal are some examples of this sector.

Test: Sectors of the Indian Economy - 1 - Question 7

ATM is an example of

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 7

ATM is an example of tertiary sector which is also known as service sector. ATM is a machine whose full name is Automated Teller Machine. It was invented in 1960 by John Shepherd - Barron.

Test: Sectors of the Indian Economy - 1 - Question 8

Assertion: The share of agriculture in the Gross Domestic Product (GDP) is declining in India.
Reason: Agriculture sector is facing problems of non irrigated land, increasing debts, seasonal employment etc.

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 8
Explanation:
The correct answer is A: Both A and R are true and R is the correct explanation of A.
Explanation of Assertion (A):
The share of agriculture in the Gross Domestic Product (GDP) is declining in India. This can be attributed to several reasons, including:
1. Non-irrigated land: A significant portion of agricultural land in India is rain-fed, leading to a higher dependency on monsoons for irrigation. This makes agriculture vulnerable to droughts and crop failures.
2. Increasing debts: Many farmers in India face a high level of indebtedness due to factors such as low crop prices, lack of access to credit, and high input costs. This financial burden reduces the profitability of agriculture and discourages investment in the sector.
3. Seasonal employment: Agriculture in India is largely characterized by seasonal employment, with a majority of farmers engaged in subsistence farming. This means that agricultural activities are limited to specific seasons, leading to income instability and lower overall productivity.
Explanation of Reason (R):
The problems of non-irrigated land, increasing debts, and seasonal employment are contributing factors to the declining share of agriculture in India's GDP. These problems directly impact the productivity and profitability of the agricultural sector, making it less attractive for investment and leading to a shift towards other sectors of the economy.
Therefore, it can be concluded that both the assertion and reason are true, and the reason is the correct explanation of the assertion.
Test: Sectors of the Indian Economy - 1 - Question 9

The service sector includes activities such as:

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 9
Service sector activities:
- Transport: This includes the movement of goods and people from one place to another through various means such as road, rail, air, and water transport. It encompasses services like logistics, public transportation, courier services, and shipping.
- Communication: This involves the transmission of information, ideas, and messages through various channels such as telephone, internet, television, radio, and postal services. It includes services like telecommunication, broadcasting, internet service providers, and postal and courier services.
- Banking: This sector deals with financial services such as accepting deposits, providing loans, issuing credit cards, and facilitating electronic transactions. It includes services like commercial banks, investment banks, insurance companies, and brokerage firms.
- Insurance: This sector provides coverage against risks and uncertainties, offering protection and compensation in case of specified events such as accidents, illnesses, and natural disasters. It includes services like life insurance, health insurance, property insurance, and vehicle insurance.
- Hospitality: This sector caters to the needs of travelers and tourists, providing accommodation, food, and entertainment services. It includes services like hotels, restaurants, resorts, theme parks, and travel agencies.
- Healthcare: This sector involves the provision of medical services, including diagnosis, treatment, and prevention of diseases and injuries. It includes services like hospitals, clinics, pharmacies, and medical laboratories.
- Education: This sector focuses on imparting knowledge, skills, and values through formal and informal methods. It includes services like schools, colleges, universities, vocational training institutes, and online learning platforms.
- Professional services: This sector encompasses a range of specialized services provided by professionals such as lawyers, accountants, architects, engineers, consultants, and IT specialists.
- Entertainment: This sector offers recreational activities and forms of amusement, including movies, music, sports, gaming, and performing arts. It includes services like theaters, sports stadiums, concert halls, amusement parks, and online streaming platforms.
- Retail: This sector involves the sale of goods directly to consumers, including both physical stores and e-commerce platforms. It includes services like supermarkets, department stores, convenience stores, and online marketplaces.
Therefore, option C: transport, communication, and banking are examples of service sector activities.
Test: Sectors of the Indian Economy - 1 - Question 10

How do big private companies contribute in the development of a nation?

Detailed Solution for Test: Sectors of the Indian Economy - 1 - Question 10

The big private companies contribute in the development of a nation in the following ways: 1.It promotes rapid economic development through creation and expansion of infrastructure. 2. It creates employment opportunities.

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